Pirelli: shares plummet on lower margin forecast
(CercleFinance.com) - Pirelli shares are taking a battering on Wednesday, falling over 7%, after the Italian tyremaker cut its full-year margin forecast and warned about growing price pressure on standard products.
The Milan-based company said it expects to report an adjusted Ebit margin of between 17% and 17.5% this year. It had earlier forecast margins between 18% and 19%.
Pirelli said 2019 revenues are now expected at at least 5.3 billion euros, up around 2.5%, from a previous indication of between +1.5% and +2.5%.
Its revenues in the first nine months of the year grew by 2.8% to 4 billion euros, with an adjusted Ebit margin of 17%, due to higher costs.
Pirelli's shares are currently down 7% at 5.4 euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The Milan-based company said it expects to report an adjusted Ebit margin of between 17% and 17.5% this year. It had earlier forecast margins between 18% and 19%.
Pirelli said 2019 revenues are now expected at at least 5.3 billion euros, up around 2.5%, from a previous indication of between +1.5% and +2.5%.
Its revenues in the first nine months of the year grew by 2.8% to 4 billion euros, with an adjusted Ebit margin of 17%, due to higher costs.
Pirelli's shares are currently down 7% at 5.4 euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.